Ferrexpo’s Ukraine shutdown deepens fight for survival
The shutdown turns a wartime shipping disruption into a threat to one of Europe’s main suppliers of high-grade pellets.
Switzerland-based iron ore miner Ferrexpo has suspended production in Ukraine following Russian attacks that have crippled its Black Sea export routes. The halt affects Ferrexpo's mines and pellet plant near Horishni Plavni, located about 280 kilometers southeast of Kyiv. Despite still having stockpiles, the company's ability to restart production depends on securing additional funding.
Ferrexpo, which was once the world's third-largest iron ore pellet exporter before Russia's 2022 invasion of Ukraine, can still supply European steelmakers but lacks fresh capital to resume operations. The company expects its net accessible cash resources to last until mid-September without additional funding. Russian drones recently attacked a third-party vessel carrying Ferrexpo pellets in Ukrainian Black Sea waters, killing one crew member and causing a $20 million loss.
The attack has disrupted Ferrexpo's plans to boost Black Sea shipments to the Middle East. Ferrexpo has been seeking at least $100 million in equity financing since April and currently has only $17 million in accessible cash. The company's Ukrainian subsidiary, Ferrexpo Poltava Mining, is also facing bankruptcy proceedings over a disputed civil claim.
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